Govt to borrow less from foreign lenders – Malacañang

Seventy percent of government loans next year would consist of domestic borrowings, Malacañang said Tuesday after President Benigno Aquino III approved a plan to source less funds from foreign lenders. "The borrowing mix will be 70-30 in favor of domestic borrowings," Presidential Communications Development and Strategic Planning head Ricky Carandang said in a press briefing. Finance Secretary Cesar Purisima and Budget Secretary Butch Abad presented the plan to the President on Monday, Carandang said. Government has programmed net borrowings of P307.8 billion for 201, with P262.7 billion coming from local lenders and P45.1 billion from foreign sources, he said. Carandang said more details would be disclosed during Wednesday's Philippine Mid-Year Economic Briefing, with the country’s fiscal managers on hand to talk about the fiscal side of the economy. Purisima and Abad earlier said they would increase the share of domestic borrowings against foreign loans for government to manage the national debt and narrow the budget gap. Abad said more domestic borrowings would shield government from a volatile foreign exchange market. Aquino discussed with Purisima and Abad the country’s debt structure, which loans were about to mature, and interest rates. —VS, GMANews.TV